Slashdot Mirror


Microsoft Settles Korean Antitrust Case

Channy writes Microsoft announced on last Friday that it had reached a settlement with South Korean Internet portal Daum in antitrust case of IM bundling. Daum had complained to the South Korean Fair Trade Commission in 2001, accusing Microsoft of breaking the law by tying its instant messaging software to Windows. A lawsuit on the same grounds was filed in 2004. By the settlement, Microsoft will pay Daum $30 million, including $10 million in cash. In return, Daum would drop its lawsuit. Before this decision, Microsoft has threatened to withdraw its Windows software from South Korea if the country's antitrust agency orders it to unbundle its instant-messaging and media player software from the operating system. Despite this settlement, KFTC announced plans to continue investigation of this case and conclude the final decision within this year."

27 of 97 comments (clear)

  1. Where's the 20M$ by SpaghettiPattern · · Score: 2, Interesting

    Microsoft will pay Daum $30 million, including $10 million in cash

    Where's the 20M$ remaining? Are they paying in licenses? Again? How long before MS licenses are on the forex rates?

    --

    I hadn't the slightest objection to his spending his time planning massacres for the bourgeoisie... (P.G. Wodehouse)
    1. Re:Where's the 20M$ by interstellar_donkey · · Score: 4, Funny

      The remaning $20 million will be paid out in "Microsoft Fun Bucks", little blue and green notes with pictures of smiling MS execs on them. These can be used to purcahse certian Microsoft products, food at the MS headquarters cafeteria and items at the MS giftshop.

      At current rates, $20 million in MS fun bucks can purchase 4 force feedback joysticks, a copy of 'Age of Empries, 10 Microsoft branded tote bags and a dozen MS ballpoint pens. With enough left over for a cheese and mushroom omlet at the cafeteria.

      --
      The Internet is generally stupid
  2. How does that work? by schon · · Score: 3, Interesting

    Microsoft will pay Daum $30 million, including $10 million in cash.

    So.. the other $20M will be in the form of an NSF cheque?

    And when is the drop for the cash going down? Is the $10M going to be in small, non-sequentially numbered, unmarked bills?

  3. This should drive China to Linux by G4from128k · · Score: 5, Interesting
    I'm sure that Chinese officials are taking one look at Microsoft's threat to withdraw from Korea and realizing that they don't want China to depend on such a capricious foreign vendor.

    What will happen when China stops using Windows and also becomes the leading maker and buyer of PCs? Companies that do business with China (and most do) will see less and less advantages in staying 100% Windows and less and less likely to buy Microsoft's nonstandard applications.

    --
    Two wrongs don't make a right, but three lefts do.
    1. Re:This should drive China to Linux by JonN · · Score: 4, Interesting
      This isn't the first drive, and this isn't the last. From this article:

      The bad news for Microsoft: China decided to do this by switching to Chinese companies, many of which develop for Linux.

      And what is interesting about this article? Check the date: Wed Jan 09 2002

      --
      do.what.promptcmds
    2. Re:This should drive China to Linux by moro_666 · · Score: 3, Insightful

      a) linux is already quite popular in china already, ffs, they have their own distro :D

      b) and after several years, the remaining linux howtos will only be understandable when you are able to read Chinese.
      lucklily that will take quite some years, unless the assassinate the leading kernel/kde/gnome developers and install liu touva & other dudes named like that in place. instead you should be affraid china forking their own linux project all together and the mess that this will create (and they will rename it to Leenux)

      c) with the corruption and illegal action rates currently in china, not even the forbidding order from the goverment can stop windows from being pirated there all over the place.

      d) imagine the power of developers currently kept back behind the "china's wall". there may be a next "einstein of code" hidden there.

      --

      I'd tell you the chances of this story being a dupe, but you wouldn't like it.
    3. Re:This should drive China to Linux by jurt1235 · · Score: 2, Funny

      (and they will rename it to Leenux)

      Correction there: They will rename it to Chinux (-:

      --

      My wife's sketchblog Blob[p]: Gastrono-me
  4. If you can't win them, pay them :-) by what+about · · Score: 2, Insightful

    It used to be if "you can't win, join them" it seems that Microsoft has redefined it :-)

    Gosh, they may even patent it as a business practice !!

  5. consumers by mary_will_grow · · Score: 4, Insightful

    By the settlement, Microsoft will pay Daum $30 million, including $10 million in cash. In return, Daum would drop its lawsuit.

    OK, but "justice has not been served". The problem of unfairly putting Microsoft's IM client in a favorable light is still there, and this company will still lose their market share to them, and consumers will still be worse off for having lost some competition.

    Winner: The one with the deepest pockets! Subverting the not-quite-free-market to hurt consumers everywhere!

    --
    Why stick up for big business?
    1. Re:consumers by flyinwhitey · · Score: 2, Interesting

      "Winner: The one with the deepest pockets! Subverting the not-quite-free-market to hurt consumers everywhere!"

      Please exercise some critical thinking skills before you spout a ridiculous, overused meme like this.

      Now, I would like you to explain how MS won this case with their deep pockets when

      a) THEY DIDN'T WIN!!!
      b) THEY DIDN'T WIN!!!
      c) The other company was going to win before the settlement.

      They settled. That's not a win, not even by the twisted, we-must-all-hate-MS-because-we're-slashbots mentality.

      Just because they can pay a fine for their wrongdoings, and that fine isn't up to your standard, that does NOT mean they won.

      So give it a rest.

      --
      How pathetic are you that you follow me from topic to topic and waste all your mod points at once modding me down?
    2. Re:consumers by CaymanIslandCarpedie · · Score: 2, Informative

      Subverting the not-quite-free-market to hurt consumers everywhere!

      Don't disagree with anything you are saying, but either I misunderstood your use of the term "free market" or you misunderstand its meaning.

      In a true "free market" there are no law or regulations governing commerce. The idea is the market will sort it all out itself. So in a true free market none of these lawsuits against MS would have any merit. Sometimes people seem to confuse "free market" with "fair market". The two are actually quite opposite. All "consumer protection", "anti-trust", etc laws are anti-free market forces.

      --
      "reality has a well-known liberal bias" - Steven Colbert
    3. Re:consumers by jav1231 · · Score: 2, Insightful

      Okay, so they PAID for the opportunity to bundle the software. They get to keep the IM software in the OS, right? No consumer harm was rectified. I'd say they might not have won, but they got a bargain.

  6. Far less than $30mil by Tango42 · · Score: 4, Interesting

    $10 million cash payment by Microsoft to Daum, $10 million in advertising deals and unspecified business terms worth a further $10 million.

    So that's only really $10mil. The advertising probably won't cost MS much (they probably couldn't sell it for $10mil to anyone else - they wouldn't advertise a competitor anywhere noticeable anyway), and "unspecified business terms"? That's just giving MS more business - even if they don't make money from it, they won't lose much (they have to employ all their people anyway - might as well keep them busy).

    So Daum gain $30mil, prehaps, but MS don't lose anywhere near that much. I don't know South Korean law, but I expect they could have won far more if they'd gone to court.

  7. Re:When is Microsoft not being sued? by TwoTailedFox · · Score: 3, Insightful

    That actually wasn't supposed to be a Troll Post

    I'm being quite serious, in that Microsoft seem to keep getting sued left, right, and center, all through the bundling of software products within its operating system.

    It feels like some companies are jumping on the bandwagon, knowing they'll get a settlement.

    --
    ~The TwoTailedFox posts again....
  8. Re:is it profitable? by mwvdlee · · Score: 2, Insightful

    otherwise how would it look like if whole Korea switched off windows?

    It would be like an enormous proof of concept, demonstrating that a country can safely ditch Microsoft products without drawbacks.

    --
    Slashdot social media options: AIM, ICQ, Yahoo, Jabber and Mobile Text. Why no MySpace?
  9. How much difference does this make? by 8127972 · · Score: 3, Insightful

    After all, Microsoft is in a position to throw money around like 50 Cent in a rap video. This is simply a payment to make their problems not only go away in Korea, but to keep other countries from thinking that they can investigate Microsoft in the same way. The fact that the Koreans still want to investigate them is ecouraging, but not really meaningful IMHO.

    There's nothing to see here. Move along.

    --
    This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
  10. Re:is it profitable? by Skye16 · · Score: 2, Funny

    ...except for all the korean gamers, who would probably explode.

  11. ...so the bottom line is... by bogaboga · · Score: 2, Interesting

    ...that M$ continues to bundle, just like before. I have come to one conclusion. Courts in Korea are just as inept as those in this USA. Sad indeed.

  12. Implications for MA OpenDoc case by Thagg · · Score: 3, Insightful

    Massachussets is involved in a case with Microsoft over the future of digital documents. MA has made it a requirement that all records be stored in a completely open digital format, and have recommended that the OpenDoc standard qualifies (along with Adobe's PDF) and that Microsoft's new MSXML doesn't.

    Microsoft is imposing some restrictions on the MSXML format -- and it would appear that they might be able to change those restrictions at some future time.

    If they are willing to cut off an entire country, then potentially it may be impossible legally to read and modify that country's documents. Massachussets has to be aware that if it could happen to Korea, it could potentially happen to MA if they are too uppity.

    We'll see if Massachussets officials can withstand the full-court press of Microsoft's hard-bought political muscle, but if anything should give those officials some backbone, it's this kind of nonsense.

    Thad Beier

    --
    I love Mondays. On a Monday, anything is possible.
  13. Mod me troll if you want by NVP_Radical_Dreamer · · Score: 4, Insightful

    But I personally see no problem with bundling their client with the operating system, or even the media player for that matter. Most users use the computer as an appliance, they want it to just work. They dont want to go find an IM client and media player and install it, they expect it to just be there. If you dont like it, remove access to it via GPEDIT.

    What I DO have a problem with is the amount of "digging" the average person has to do to find a way to remove them if they dont want them there.

    --
    The best argument against democracy is a five-minute conversation with the average voter.

    - Winston Churchill
    1. Re:Mod me troll if you want by Phroggy · · Score: 3, Insightful

      Apple bundles an IM client with Mac OS X. Guess what though? It's just bundled - that's all. If you don't want to use it, you can simply ignore it, or drag it to the Trash without ever opening it.

      Microsoft's IM client isn't just bundled: it launches automatically every time you load Windows, pops up with an alert telling you to sign up for an account, and stays in your taskbar unless you know how to get rid of it (the average user doesn't know how).

      Also, Apple doesn't run their own IM network; their client works with AIM and Jabber, and doesn't display advertisements. You can use Apple's client to connect to a third-party network without registering with Apple for anything.

      --
      $x='S24;r)>63/* h@<5+oZ)32"5cz';$me='phroggy'x$];
      $x=~y+ -xz+\0-Tx+;print$_^chop$me for split'',$x;
  14. MS Messenger vs. Apple Quicktime iChat by digitaldc · · Score: 2, Interesting

    Does this mean that Apple will have to unbundle Quicktime from Tiger if it ever ships to South Korea or other countries with anti-trust laws as well?

    --
    He who knows best knows how little he knows. - Thomas Jefferson
  15. New Solution to compliment MSFT's decision by OneSeventeen · · Score: 3, Funny

    Microsoft Gives Daum $30Million, South Korea switches to Ubuntu. $30Mil would buy what, 60,000 computers that could run Ubuntu smoothly? (monitor included) And they could choose whether or not to install an instant messenger application!

    A Skit:

    • MSFT: Here, have an OS with all sorts of non-OS software packaged in.
    • Daum: But we don't want non-OS software, it's against our laws to force us.
    • MSFT: Freedom is overrated, too bad.
    • Daum: /me files lawsuit.
    • MSFT /me plays a violin.
    • Linspire: Here is a free OS I'd be willing to sell for cheap, and it looks like Windows but doesn't violate any of your laws.
    • S.Korea: Hmmmm.....
    • MSFT: $30Million ($10 in cash... for some reason)
    • Daum: *shrug* Okay.
    • Lawsuit: /leave
    --
    "Now the trouble about trying to make yourself stupider than you really are is that you very often succeed." -C.S. Lewis
  16. Re:is it profitable? by cbiltcliffe · · Score: 2, Funny
    "world damination project".
    I know that's a typo. The question is, did you mean "world domination project", or "world damnation project"? :)
    --
    "City hall" in German is "Rathaus" Kinda explains a few things......
  17. Big Business, indeed by mikrorechner · · Score: 2, Insightful

    Personally, I don't really like the idea that some companies now are big enough to try to extort a mid-sized country. If I were South Korea, I'd really be worried what other global players might do in a few years time.

    I guess this is one of the reasons why the European Union exists. One country alone, if it isn't a really big one like the US, is simply too small a market to matter to the global players if you annoy them too much. AFAIK, Microsoft never threatened to withdraw their products from the European market during the antitrust proceedings there.

    --
    "Oh, a lesson in not changing history from Mr I'm-my-own-Grandpa." - Dr Hubert Farnsworth
  18. For fuck's sake... by jofi · · Score: 2, Insightful
    It's their damn OS, let them bundle whatever the fuck they want.

    Banning the ability to install other IM clients is anti-competitive, not merely bundling.

    Let's sue Apple for bundling their programs into their OS.

    Jesus christ people, at least be consistent.

    --
    Blame the user, not the software.
  19. Re:is it profitable? by schon · · Score: 3, Funny

    I know that's a typo. The question is, did you mean "world domination project", or "world damnation project"?

    This is MS - is there a difference? :o)